Keeping on top of the law is the top challenge for small law firms

Overcoming the legal knowledge deficit

Keeping current on changes in legislation, regulations, and legal precedents was cited as the biggest challenge by a staggering 70% of small law firms.

With lawyers at smaller firms expected to be subject matter experts across multiple practice areas, maintaining comprehensive legal knowledge is both vital and incredibly difficult.

"Time is often the biggest barrier to keeping up to date with changes in the law," admitted one legal director surveyed. The constant influx of new information simply outpaces the capacity of these thinly-stretched teams.

Some lawyers have turned to the open internet and public AI tools like ChatGPT for legal research. However, experts unanimously warn against relying on these unvetted sources which frequently contain inaccurate, outdated, or fabricated information.

"You have to read the case law and commentary at source," stressed Zoë Bloom, Founding Partner at AFP Bloom.

"Relying on commentary without a clear, reputable source can be incredibly dangerous and put both the lawyer and client at unnecessary risk."

Rayner from LexisNexis echoed this sentiment, noting "There's so much information to sift through, laws are changing quickly, and our legal system is becoming increasingly complex."

"Lawyers need access to authoritative sources they can trust, otherwise they will struggle to keep pace."

To bridge this legal knowledge gap, the report found firms are increasingly investing in practical guidance tools (34% have or plan to invest) and legal research platforms (29%). These solutions provide vetted legal intelligence, analysis, and insights drawn from reliable sources and legal experts.

Prioritising responsive client communication

Beyond the knowledge hurdle, small firms also face mounting pressure to provide highly responsive, transparent client communication and service. A striking 83% of respondents said clients now demand quicker response times than before.

"The close client relationships you get to build in a small firm can be really rewarding," said one legal director. "But the lack of capacity means meeting those expectations can be extremely high-pressured."

While the vast majority (84%) believe they provide an excellent client experience, the reality is smaller teams are stretched incredibly thin. This impacts their ability to deliver the attentive, personalised service modern clients expect.

"Your team shouldn't be spending half their day researching answers to client queries or rehashing old legal documents," said Chris Rayner from LexisNexis. "Legal tech solutions like AI can instantly provide those answers in a matter of seconds, freeing up more time for substantive client work."

By leveraging technologies that streamline communication and automate routine tasks, small firms can reallocate their limited resources towards delivering the responsive service today's clients demand.

Bridging both gaps is mission critical

Effective knowledge management and client communication are inextricably linked for small law firms. Having access to accurate, up-to-date legal information enables lawyers to provide sound counsel quickly. And utilising tools that enhance communication allows firms to strengthen client relationships and satisfaction.

"Smaller firms are nimbler and can offer a highly personalised service, as the person you speak to is predominantly the person who does the work," said Mark Briegal, Founding Partner at Bennett Briegal LLP. "But they need the right resources and technological capabilities to truly deliver on that promise."

The 2024 Bellwether report findings reveal the urgency for small firms to bridge both the legal knowledge gap and the client communication gap through strategic investment in technology.

Firms that fail to do so risk providing incomplete or outdated counsel, missing critical updates, and ultimately failing to meet client expectations in an increasingly competitive market.

By embracing AI-powered legal research, practical guidance solutions, automated communication tools and more, small firms can work smarter and gain a crucial competitive advantage. With access to the latest legal intelligence and the ability to be highly responsive, they can provide a level of service that delights clients and drives sustainable growth.

Access the complete 2024 Bellwether report findings and insights.